Utah State University

Title

Simulating Logan Repayment by the Sinking Fund Method (Sinking Fund Governed by a Sequence of Interest Rates)

Author

Placede Judicaelle Gangnang Fosso, Utah State University

Date of Award

2012

Degree Type

Report

Degree Name

Master of Science (MS)

Department

Mathematics and Statistics

First Advisor

Dr. Daniel Coster

Abstract

The sinking fund method is a way to repay a loan where the borrower pays the amount of interest accrued by the principal at the end of each time period and puts a certain amount in a sinking fund in order to repay the principal at the end of the loan. Usually, we assume that the interest rate on the sinking fund is the same during the entire time of the loan. In the study, we will depart from the usual assumptions and will look at different scenarios, including when changes of the interest rate on the sinking fund follows a normal distribution, a uniform distribution and ARIMA processes.

Comments

This work made publicly available electronically on June 4, 2012.

Recommended Citation

Gangnang Fosso, Placede Judicaelle, "Simulating Logan Repayment by the Sinking Fund Method (Sinking Fund Governed by a Sequence of Interest Rates)" (2012). All Graduate Plan B and other Reports. Paper 135.
http://digitalcommons.usu.edu/gradreports/135

6-4-2012